Cited by 1,940School Choice and PerformanceLabor market dynamics and wage inequalityEconomic Growth and Productivity

Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment

Duflo, Esther·2001·American Economic Review

Abstract

Between 1973 and 1978, the Indonesian government engaged in one of the largest school construction programs on record. Combining differences across regions in the number of schools constructed with differences across cohorts induced by the timing of the program suggests that each primary school constructed per 1,000 children led to an average increase of 0.12 to 0.19 years of education, as well as a 1.5 to 2.7 percent increase in wages. This implies estimates of economic returns to education ranging from 6.8 to 10.6 percent. (JEL I2, J31, O15, O22)

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Registry

Crossref · 10.1257/aer.91.4.795

Cites

18 of 18 references verified0 citation errors · 0 not checkable

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  • In Duflo (2001), under a common trends assumption on D_i,g,t(0), the first-stage coefficient identifies a weighted sum of the effect of one new school on years of schooling in every district, with many negative weights.

    “For instance, in Duflo (2001), under a common trends assumption on D i,g,t (0) , the number of years of schooling individuals would complete if zero new schools were constructed in their district, the first stage coefficient identifies a weighted sum of the effect of one new school on years of schooling in every district, with many negative weights.”

    From Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects (2020) · cites this paper as Duflo (2001)

  • The result that the 2SLS coefficient identifies a LATE in the special case with two groups and two periods does not generalize to applications with multiple groups and periods or a non-binary instrument.

    “However, the discussion above shows that this result does not generalize to applications with multiple groups and periods or a non-binary instrument, as in Duflo (2001) where the number of new schools constructed varies across districts.”

    From Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects (2020) · cites this paper as Duflo (2001)

  • Duflo (2001) studies the life-course impact of childhood exposure to school availability in Indonesia based on district and year of birth, and Bailey, Sun, and Timpe (2021) examine the long run impacts of childhood exposure to Head Start in the United States, with treatment based on county and year of birth.

    “This situation can arise in cohort studies: for example Duflo (2001) studies the life-course impact of childhood exposure to school availability in Indonesia based on district and year of birth, and Bailey, Sun, and Timpe (2021) examine the long run impacts of childhood exposure to Head Start in the United States, with treatment based on county and year of birth.”

    From An Introductory Guide to Event Study Models (2023) · cites this paper as Duflo (2001)

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Authors
Duflo, E.
Affiliations
Massachusetts Institute of Technology (US)
Corresponding author
Duflo, Esther
Venue
American Economic Review
Published
2001-09-01
Volume
91
Issue
4
Pages
795-813
ISSN
0002-8282 (ISSN-L)
OpenAlex
W3124366560
Cited by
1,940
References
18
Citations by year
2026: 160 · 2025: 144 · 2024: 116 · 2023: 100 · 2022: 102 · 2021: 109 · 2020: 90 · 2019: 106 · 2018: 81 · 2017: 97 · 2016: 80 · 2015: 79 · 2014: 83 · 2013: 81 · 2012: 74
FWCI
123.21
Type
journal article
Language
en
Open access
closed
Locations
  • American Economic Review (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Education › School Choice and Performance
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Keywords
school construction, education policy, economic returns to education, wages, primary education, labor market outcomes, Indonesia, policy experiments

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